Tesla (TSLA) is getting help from Wall Street with several analysts pointing to the stock now being at a buying opportunity level, which helps to stop the bleeding.
As we reported on Monday, Tesla’s (TSLA) stock is taking a beating, and investors are asking the board to assist with a share buyback program.
Investors began a petition to ask Tesla’s board to approve a share buyback program, and it now has over 5,000 signatures. There’s a likelihood that it could occur since Tesla CEO Elon Musk said last month that the board was considering a $5 to $10 billion share buyback program.
This is able to only be a small help, though, considering that Tesla has erased nearly $500 billion in market capitalization during the last three months.
But until the board decides on a buyback program, Tesla investors need to depend on one other ally to assist the stock: Wall Street. With the drop in stock price, several Wall Street analysts have issued notes to clients signaling that the stock is entering buying opportunity levels.
Adam Jonas, a Morgan Stanley analyst covering Tesla, sees almost 100% upside to Tesla’s stock at this price. He wrote in a brand new note to clients:
In a slowing economic environment, we consider Tesla’s ‘gap to competition’ can potentially widen, particularly as EV prices pivot from inflationary to deflationary. With respect to the IRA (Inflation Reduction Act) we consider Tesla is by far the most effective positioned OEM when it comes to potential eligibility for consumer tax credits (as much as $7,500/unit) and for Section 45x production credits (as much as $45/KWh). The present price offers roughly 100% potential upside to our $330 price goal which is the best upside to focus on we have now seen from Tesla in over 5 years.
Citi analyst Itay Michaeli also modified his tune on Tesla following the stock price decrease.
Michaeli upgraded Citi’s rating on Tesla’s stock to neutral, as he noted it now trades for a gorgeous near-term risk/reward profile.
Dan Ives from Wedbush Securities also got here out with a brand new note on Tesla today with expectations for a powerful Q4 with what he believes may very well be as many as 450,000 deliveries, which could be a serious latest record for Tesla.
Ives maintains a $250 price goal on Tesla’s stock – representing a major upside.
Tesla’s stock (TSLA) is up greater than 5% this morning following the notes from the three Wall Street analysts.